Greenlight Capital's David Einhorn said Tuesday that President Donald Trump's focus on job creation and other economic factors are positive for personal income.
"If you have high levels of personal income, I think you're going to wind up with high levels of demand for new cars and, also, better-than-expected performance in the credit subsidiaries," he said on CNBC's "Halftime Report" on Tuesday.
With the already low unemployment rate, Einhorn explained that more jobs will lead to a possible labor shortage, which translates to higher wages. He added that interest income will swell as the Federal Reserve raises its benchmark rate.
While some investors are fixated on infrastructure stocks, Einhorn said, "If you really believe the Trump story, you should be investing in consumer durables like autos."
On Tuesday morning, Einhorn's fund sent a letter to General Motors, urging the company to split its common stock into share classes, a move Greenlight said would "unlock value" and "improve its financial flexibility."